
Thought Leadership
We think a lot about risk—and ways to manage it—in a variety of ways. From rising concerns to best practices to exposure assessments, we're sure you’ll find our expert insights valuable.
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Four ways to a more resilient digital life
After several challenging years, the idea of resilience has, understandably, become a popular topic. In fact, when the Harvard Business Review asked readers what they had learned in 2022, “resilience” was among the most common responses. As risk management experts, we are always thinking about areas where clients can build more resilience into their lifestyle. An increased digital footprint is one for most and thus an area where focus is due. Doing more things online brings tremendous convenience and opportunity, but also unfortunately new risks. To make sure that your digital experience is more the former than the latter, we are sharing best practices for leading a more resilient digital life. The following recommendations will help you better anticipate potential issues and adjust your online behaviors and transactions so that you are less at risk of hacking, lawsuits, and fraud. 1. Use connected devices cautiously. The world has quickly grown attached to online home security systems, smart speakers, and other connected devices and with good reason: they are convenient, comforting, and easy to use. Potential downside: Anything connected to the Internet can be hacked. For example, in 2022, two people were indicted for hacking into Ring systems, reporting hoax emergencies then livestreaming the police response. Researchers have also found a way to commandeer Amazon Echo speakers into performing tasks, like opening doors. And there is also concern that these devices listen to private conversations and track what is said. Building resilience best practice: We advise clients against relying on this type of “retail” security protection, as it is no substitute for a professional security team and network. Moreover, carriers only give credit toward premiums to policyholders that install a central station alarm system. Additionally, if you install Alexa or Echo devices, be sure to choose the most secure privacy and access settings, such as turning off voice recordings. 2. Be vigilant about posting publicly. Around 70% of Americans use social media platforms to connect with one another, engage with news content, share information, and entertain themselves. And more than 50 million people worldwide classify themselves as influencers or creators and use social media to promote or recommend brands and other things. Potential downside: If your profile is public, any post might include glimpses of belongings—jewelry, expensive handbags, art— that would be alluring to any observant criminal. But there are other risks, too. Post something negative, and you could be sued for defamation or slander. Promote products that don’t perform, and you could be sued for fraud. Building resilience best practice: Scan the background of your stories and posts before making them public. (Better yet, if you are not an influencer, consider keeping your social accounts private.) Be especially cautious about showing your location or spotlighting your children. Talk with your broker to make sure your collections policy is up to date. Similarly, if your child is an influencer and not yet 18, you could be responsible for their online transgressions, so also ask about liability coverage. 3. Investigate online auctions before participating in them. The pandemic accelerated the relevance of virtual marketplaces – these days even major houses like Sotheby’s and Christie’s regularly host online auctions. Again, the convenience is a major selling point, erasing the need to travel to where the auction is. Potential downside: It’s harder to examine potential acquisitions. Color fluctuates depending on the monitor and condition, too, is also hard to discern. And, of course, the rise of online auctions has led inevitably to the rise of online auction scams. Building resilience best practice: You or your advisors should research an item’s provenance, compare prices of similar items and, most of all, limit your patronage to reputable auction houses. Two warning signs to look out for, particularly when you are dealing with a less-well-known seller: a price that seems too good to be true and a sense of urgency in the negotiation. We urge you to be extra cautious, as aside from maybe a small reimbursement, insurance policies do not usually cover fraudulent auction purchases. 4. Remember that there is currently no coverage for NFTs, and that the market is quite fluid. It was a rollercoaster year for non-fungible tokens (NFTs), the trendy digital artwork that is stored on the blockchain. Yes, the total trading volume in NFTs dropped significantly, but several of the most expensive iterations were sold, too. Clearly, they continue to hold interest for collectors. Potential downside: For now, carriers are not offering any protection for these collectibles, although we are in regular conversations with them about the need for solutions. Additionally, these transactions are rife with scams and recovery of NFTs is slow and difficult. Building resilience best practice: First and foremost, given the volatility and lack of regulation of this market, we suggest only spending an amount you are comfortable potentially losing. Even then, incorporate every possible safeguard with each purchase. This includes buying only from verified marketplaces; using a hardware wallet (which works like a flash drive) to access your NFTs and ignoring random emails as well as pop-ups that promise exclusive opportunities. In today’s challenging insurance landscape, it is especially crucial to build resilience into every aspect of your life. The digital environment is an area that demands extra caution due to the vast risk of exposure. In fact, we believe it requires a concerted effort from the whole family to truly fight cybercrime. These discussions and practicing the above risk management tips will help further increase your digital resiliency online. ...
Read in 5 minutesPreparing your home for risks
There continues to be significant challenges for clients in today’s insurance market: higher premiums, an increase in non-renewals and more difficulty obtaining policies are just the beginning. But there are things you can do to minimize the impact of such challenges, especially around your home(s). Given today’s risk landscape, we all benefit from thinking about the potential perils at every turn—both the expected and unexpected. From the deep freeze in Texas to the wildfires in California, extreme weather is causing a tempest throughout the industry. The impact is neither limited to the hardest-hit regions, nor is it likely to go away soon. In any scenario, being prepared can make all the difference, both for your safety in the moment and for risk management in general. As we approach the new year, our loss control specialist suggests taking the following steps to protect your home and belongings: 1. Create and execute a maintenance plan. Most people rarely—if ever—think about their home’s electrical, mechanical, and plumbing systems when all appears well. But checking them regularly can minimize costly surprises, especially since changing seasons and passing years take their toll on even the highest-quality materials and networks. The following are different items you may want to include on your annual maintenance plan: Because outdoor condensation lines clog over time, you will want to inspect them for blockages and clean them when necessary. Water heaters. Since rust is the big issue here, expect to replace the water heater anode rod every few years. Water lines. As rubber hoses age, they grow brittle. We recommend replacing them before they spring a leak. Roofs and chimneys. These are major sources of headaches: leaky roofs can lead to serious structural damage and chimneys need to be kept cleaned and clear (which means checking for unwelcome intruders, like nesting birds). Exterior wood. This is an especially crucial task in humid areas, as siding is more susceptible to dry rot and infestations. That sort of decay can lead to interior water seepage that damages the home. Inspect for soft spots in the wood and replace sections if necessary. Additionally, keep up with painting and caulking as needed. Clogs invite trouble because when pooling water has nowhere else to go, it often finds its way inside the house. Also, in wildfire zones, the last thing you want is a gutter filled with flammable debris. So, no matter the location, it’s crucial to keep your gutters clear. 2. Monitor water flow. Too often we have seen a minor drip turn into a major headache. Whether from a burst pipe, a defective ice machine or a leaky faucet – water loss is the second-most common claim made by our clients. Automatic shut-off devices are highly recommended (if not essential), which alert homeowners to increased flow in pipes and leaks. 3. Pay extra attention at holiday time. Though the season wouldn’t be the same without them, candles and electrical lights pose additional risks. To make sure the decoration is enjoyable and not worrisome, be on the lookout for potential peril: Is the holiday display too close to the artwork? Will children be playing near the menorah? 4. Give your second home a second glance. It’s easy to let the routine maintenance of vacation homes slide, and that just compounds the fact that you are not always on-site to detect small issues before they balloon. A to-do list to complete before closing up for the season, or even the week, will help. Things to check off include: Is the heat properly set? Is the water system turned off? Will the caretaker stop by to check on things? 5. Handle collections with care. Making sure your prized possessions are well protected is paramount. These are some things to consider: A few inches can separate safety from disaster. We suggest making sure you don’t hang a painting where it can be punctured by a doorknob or pawed by the family dog. Similarly, we recommend you store your collectible car in a well-equipped garage with suitable alarms and security systems. Make sure the building protects against rain, ice, floods, and whatever natural disasters are common in your area. Be sure to train everyone in the household to not only care for each of the pieces in your collections, but what to do in case of accidental damage. In most cases, hire professional art conservators to do any required cleaning and certainly for any needed repairs. Also, limiting those charged with the task will help limit the risk of theft. Planning. Train the staff on how to safely and effectively handle situations such as fires or weather incidents. This way, employees know how to properly protect art or other valuables. Establish evacuation protocols—including who is tasked with moving valuables, and to where—as well as conduct practice drills with your staff and family. Our job is to see risk where others might not, but it’s also to educate our clients to see it too. Along with this article, we have developed a library full of advice and guidance on nearly every risk management concern, as well as a disaster preparedness center. And, of course, we are always available to discuss any questions or worries. Together, we can keep you and your family, as well as your home and possessions, secure. ...
Read in 5 minutesCommon misconceptions about your insurance coverage
Major losses are hard enough to weather on their own. The last thing you need is the additional pain that comes from learning your coverage does not actually cover what you need it to. Further compounded by the fact that each policy is unique, and carriers have different options and requirements making it difficult to navigate the complexity of your personal insurance program. Which is why we are extremely careful to detail the particulars of all your coverages during our traditional client onboarding process and subsequent renewal conversations. The last thing we would ever want is for you to think something is covered when it’s not. This is one reason why we urge clients to call their insurance professional with any questions and schedule annual reviews. To further ensure that you are never caught off guard, here is a brief overview of the coverage areas we have found to be the basis of the most common misconceptions. HOME COVERAGE Assumption: Mold is covered after water loss.The reality: Typical policies provide only minimal compensation for mold damage.Unfortunately, coverage for mold damage is complicated. All homeowners policies exclude mold coverage; however, if mold damage is present after a previously covered water loss, you may only receive a nominal reimbursement. It is possible to purchase additional coverage, an option we regularly discuss with clients. If you are not sure about your limits, and this is a concern, we recommend confirming with your account executive. Assumption: Flood insurance covers all water-related losses.The reality: Floods caused by rising surface waters require a special policy.Flood insurance in this country is in flux, with the federal program that oversees it raising rates in an attempt to strengthen its financial viability. In any case, government-backed flood insurance maxes out at $250,000 for the house itself and $100,000 for what is inside. That said, you may be eligible for a private excess flood policy that covers additional losses. That’s important because flood damage that results from rising surface waters is generally an excluded peril in homeowner’s policies. However, your broker can determine if you are eligible to purchase private flood coverage that’s designed for this scenario. Assumption: Landscaping on the property is covered.The reality: Generally, only if it causes damage to any structure.If a tree falls on your residence and causes significant damage to your home, you likely will be covered. However, if a storm results in fallen trees around your property but does not cause damage to your home, you will likely have very minimal coverage. It should be noted that some carriers may offer a nominal reimbursement in these instances. Another reason to speak with your insurance broker. Assumption: Hardscaping and other structures on the property are generally covered.The reality: Most policies offer limited protection for any structures that are not attached to the main dwelling.Non-primary structures—for example, a freestanding garage, pool, pool house, natural-stone patio, or pergola—typically fall under “Other Structures.” The coverage limit is usually set as a percentage of the dwelling value on the homeowners policy. Adding more coverage is sometimes tricky, as some policies don’t allow you to amend the limit while others will only increase it with an endorsement for an additional premium. It’s best to confirm with your broker that any other structures on your property have sufficient coverage. COLLECTIBLES COVERAGE Assumption: Jewelry, fine art, wine and the like are fully protected by homeowners policies.The reality: Homeowners policies offer only limited coverage for such items.Most homeowners policies do not cover the mysterious disappearance of a bracelet, but most jewelry policies do. Similarly, homeowners policies will only cover the spoilage of wine up to a certain minimal amount, but not the full value, while many wine policies do. If you have a valuable collection of any kind, we recommend a separate policy that adequately covers a full array of potential perils and offers sufficient compensation. Assumption: Your collectible car is fully covered by any automobile policy.The reality: To ensure full coverage, you and your carrier have to agree on a car’s value.Traditional automobile insurance bases the value of a vehicle solely on its VIN number. Therefore, if a collector has a 1992 Bronco and completed extensive restorations, this would increase both the car value and demand. That valuation needs to be reflected in your policy and may require an additional collectible car policy to cover the increased value. Always keep all the documentation necessary to prove the cost of the restoration and update the agreed-upon value following any customizations. Assumption: Your collectibles policy covers the current value of your collectibles.The reality: You must regularly reappraise collectibles.Collectible policies reimburse the listed value of a piece when the coverage was purchased, adjusted for inflation, and some may include an additional amount, albeit limited, for market value appreciation. Of course, the value of collectibles often increases significantly over time. That makes appraisals necessary every two to three years to ensure your coverage is always up to date. GENERAL COVERAGE Assumption: Identity theft policies cover losses from thefts committed under your name.The reality: Most policies compensate only for expenses associated with restoring your identity.If, for example, someone takes out a $40,000 car loan using your personal information, identity theft coverage will reimburse you for the time it takes to negotiate with the loan company but not the loan itself. Therefore, speak with your insurance advisor about adding a personal cyber policy to your program to help alleviate some of the financial impact. Assumption: Excess liability coverage covers everything you own.The reality: Only listed items are covered.We always advocate for consolidating coverage with one broker, because it is the best way to make sure all your possessions are covered by a single excess liability policy. More than one broker makes it too easy for important items to fall through the cracks. And you do not want a vehicle or watercraft left uncovered should you be sued for an incident in which it is involved. (Note: excess liability never extends to personal aircraft.) Once again, while the above outlines the most common areas for misconceptions around personal insurance, every client’s personal insurance portfolio is unique. If you are concerned about any of the areas, we hope that you reach out to your insurance advisor to definitively confirm your coverage. You’ve worked hard to build what you have; we can help you make sure that it is as well protected as it can possibly be. ...
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